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Managing Change Robert Race, Vice Chair Recyclatex Introduction - - PowerPoint PPT Presentation
Managing Change Robert Race, Vice Chair Recyclatex Introduction - - PowerPoint PPT Presentation
Managing Change Robert Race, Vice Chair Recyclatex Introduction How we got here History Current Future History History History Source Lets Recycle.com (quoted mid price values) Contributory factors in the rising value of recycled
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Introduction How we got here History Current Future
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History
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History
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Source – Lets Recycle.com (quoted mid price values)
History
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Contributory factors in the rising value of recycled clothing
- 2004 – EU Expansion – 10 new countries joined
- UK – established industry
- British clothing considered to be ‘the best’
- Government promotion of recycling
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Current
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Current Market
Source: WRAP Materials Market Price Report (mid point values).
£200.00 £250.00 £300.00 £350.00 £400.00 £450.00 £500.00 £550.00 5-Oct-13 5-Nov-13 5-Dec-13 5-Jan-14 5-Feb-14 5-Mar-14 5-Apr-14 5-May-14 5-Jun-14 5-Jul-14 5-Aug-14 5-Sep-14 5-Oct-14 5-Nov-14 5-Dec-14 5-Jan-15 5-Feb-15 5-Mar-15 5-Apr-15 5-May-15 5-Jun-15 5-Jul-15 5-Aug-15 5-Sep-15 5-Oct-15 5-Nov-15 5-Dec-15 5-Jan-16
Value £ Date UK Charity Shop Grade Clothing
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- Political instability in key markets – Ukraine,
Sub-Saharan Africa
- Ebola 2014
- East African Community (EAC) proposed ban
February 2015
- Difficulties in the Nigerian economy
- Reduced Quality of Material
- Charity shops extracting more value out of
donated goods Contributory factors
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Contributory factors – cont’d…
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Contributory factors – cont’d…
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Contributory factors – cont’d…
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Contributory factors – cont’d…
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Contributory factors – cont’d…
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Contributory factors – cont’d…
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Contributory factors – cont’d…
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- Cheap Chinese goods
- Strong Pound has made UK exports of used
clothing more expensive
- Demand from Eastern Europe
- 23% of Textile Recycling Association (TRA)
members went out of business since the start
- f 2013.
Contributory factors – cont’d…
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“Well, basically, the price of textiles has gone from…the number was 16 and a half cents down to two cents a pound. So when you take in all the
- ther costs including keeping it
somewhere and moving it around, it’s just not profitable anymore for the people we were working with to do it,” Ellen Graham, the assistant store manager at Experienced Goods, which raises money for a hospice. Eric Stuben from the Secondary Materials And Recycled Textiles Association stated, the bottom just fell out of the recycled materials markets — including what the industry calls mixed institutional rags.
Global Perspective: USA market
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Global Perspective: Canadian Market
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Global Perspective: German Market
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Consequences and the Future
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Consequences
- Values across all grades have declined since the start
- f 2014
- Some charity shops now separating clothing and
textiles
- Recyclers are reducing the size of their collection
areas
- We are likely to see a continued decline in the
number of Cash for Clothing operations
- We have seen a decline in theft of clothing and bogus
charity activity
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- Recycling companies still under considerable
strain
- Difficult trading conditions in Africa
- Nigerian economy
- Introduction of living wage in UK
- In/Out EU referendum vote
- Value of rags
Future
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- Use a Reliable collector
- Charity shop grade specification
- Make sure payments are correct and
prompt
- Managing change
Managing Change
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